AMD launches $5 billion bond sale for AI expansion

AMD plans a $5 billion bond sale to fund AI growth and repay debt, potentially doubling its long-term debt and marking its largest-ever offering.

AMD is set to launch its largest-ever bond offering, aiming to raise up to $5 billion through a four-part sale with maturities between three and ten years. The funds will be used for general corporate purposes, including the potential repayment of $875 million in bonds maturing next month, and to accelerate the company’s expansion in artificial intelligence. This strategic move comes after recent partnerships with Anthropic and Microsoft to strengthen AMD’s AI chip business, as well as a previous commitment of up to $5 billion in support for Anthropic. The bond sale could more than double AMD’s current long-term debt, which is about $3.25 billion, aligning the company with other tech giants increasing debt to fund AI initiatives. Bond pricing is set at 70 to 115 basis points over U.S. Treasuries, depending on maturity. The final amount raised will depend on investor demand, with settlement expected on August 17.